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Why Event, Flight Centre, Oil Search, & Orica shares are dropping lower today

Red and white arrows showing share price drop
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In late morning trade the S&P/ASX 200 Index (ASX: XJO) has fought back from a soft start and is edging higher. At the time of writing, the benchmark index is up 0.1% to 6,109.2 points.

Four shares that have failed to follow the market higher today are listed below. Here’s why they are dropping lower:

The Event Hospitality and Entertainment Ltd (ASX: EVT) share price is down 5% to $9.10. This morning the entertainment company revealed that the sale of its German cinema business to Vue International has hit a stumbling block. Event advised that Vue is seeking to renegotiate the terms of the transaction.

The Flight Centre Travel Group Ltd (ASX: FLT) share price has fallen 1.5% to $14.06. This is despite there being no news out of the travel company. However, an uptick in COVID 19 cases in Victoria and New South Wales appears to have investors concerned that border restrictions could weigh on travel markets longer than hoped.

The Oil Search Limited (ASX: OSH) share price has dropped almost 2.5% lower to $2.82. Investors have been selling Oil Search and other energy shares on Monday after a pullback in oil prices on Friday night. The price of oil came under pressure after oil workers in Norway ended their strike. Nevertheless, oil prices still managed to rise by 9% over the week.

The Orica Ltd (ASX: ORI) share price has dropped 3.5% to $16.06. This follows the release of a business update by the commercial explosives company. This morning Orica advised that its second half Ammonium Nitrate volumes will be at the low end of its guidance range and down 15% on the expected pre-COVID-19 volumes. In light of this, the company expects FY 2020 underlying earnings before interest and tax (EBIT) to be slightly above $600 million. This compares to EBIT of $665 million in FY 2019.

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Returns as of 6th October 2020

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Flight Centre Travel Group Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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